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Contract Award for Vehicle Fluids and Lubricants
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DESCRIPTION: Vehicle Fluids and Lubricants - Gulf Coast Oil
AGENDA NO: Click or tap here to enter text.
ACTION REQUEST:
? Approval ? Review Comment ? Information Only ? Other
RECOMMENDATION:
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To authorize the Chief Executive Officer to execute a new four (4) year contract with Gulf Coast Oil & Supply, LLC, inclusive of (1) one-year option periods, for the supply of oil and fluids necessary to support fleet maintenance and operational continuity at a cost not to exceed $1,039,591.37.
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ISSUE/BACKGROUND:
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The agency requires a reliable and consistent supply of oil and fluids to maintain its bus, paratransit, and rail fleets. These materials are critical to ensuring vehicle performance, compliance with manufacturer warranty requirements, and adherence to applicable regulatory and safety standards. Continuity of supply and consistent product quality are essential to avoid service disruptions and increased maintenance risks.
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DISCUSSION:
Establishing a four-year contract with an optional one-year extensions provides several operational and financial benefits. This contract structure offers pricing stability over a multi-year period, supporting accurate budget forecasting and cost control. It also reduces administrative burden by limiting the frequency of procurement actions, allowing staff to focus on core operational priorities.
Additionally, a longer-term agreement promotes supplier commitment and consistency in product quality, which is vital to maintaining fleet reliability and protecting vehicle warranties. The optional renewal years provide the agency with flexibility to extend the contract based on supplier performance, pricing, and prevailing market conditions, ensuring continued value and accountability.
FINANCIAL IMPACT:
Funding for this contract will be allocated across the appropriate operating capital accounts as follows; Bus Account Code: 01-4300-02-8070...
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